What should a Brain Balance franchisee do regarding insurance coverage requirements beyond the minimums stated in the Franchise Agreement?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
The insurance coverage requirements contained in the Franchise Agreement are required minimums. You should consult with your attorney, landlord, and any other insurance professional to determine whether any additional insurance coverage should be established, or amended for your Franchised Business. If any lawsuit, action, proceeding, claim, demand, investigation, or injury resulting from or arising out of the operations of the Franchised Business is asserted against BBF, which is either not covered by insurance, in excess of policy limits, or below the deductible minimums of the policy, you will be required to indemnify us. You acknowledge that BBF may modify or increase the insurance limits of liability required for all Centers during the term of this agreement due to changes in experience, market conditions, and regulatory or legal changes that could increase exposure, and you agree to comply with the new standards.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 30–34)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the insurance coverage requirements outlined in the Franchise Agreement are minimums. Brain Balance recommends that franchisees consult with their attorney, landlord, and insurance professionals to determine if additional coverage or amendments to existing coverage are necessary for their franchised business.
Brain Balance also states that franchisees may be required to indemnify them if any claim, lawsuit, action, or injury arises from the operations of the franchised business that is either not covered by insurance, exceeds policy limits, or falls below the policy's deductible minimums. This means a franchisee could be responsible for covering substantial costs if their insurance coverage is inadequate.
Furthermore, Brain Balance retains the right to modify or increase the required insurance liability limits for all centers during the agreement term due to changes in experience, market conditions, and regulatory or legal changes that could increase exposure. Franchisees must comply with these new standards, which could mean increased insurance costs to maintain compliance. Therefore, franchisees should proactively assess their insurance needs and be prepared for potential adjustments to coverage requirements during their franchise term.